Reward 500 Tiger-coinsDespite the solid performance, $Grab Holdings(GRAB)$ stock dropped by 10% after hours.
While GMV and EBITDA grew, both missed Bloomberg’s forecast (GMV by 1.24%, EBITDA by 3%), suggesting that the market had already priced in much of the expected growth.
The company’s user incentives grew by 37% year-over-year, but the market is concerned whether such large subsidies can continue to drive sustainable growth in active users, which increased by only 17%.
Looking ahead, the company expects a 19% to 22% rise in sales, projecting $3.33 billion to $3.4 billion in revenue this year, just shy of the $3.5 billion analysts' average forecast.
But the loan portfolio grew by 64%, highlighting Grab's significant expansion in its digital financial services. Operating cash flow increased to $253 million, up from -$26 million in the same period last year, indicating a positive shift in operating performance.
Grab's Three Core Businesses - Which Ones Have You Used?
As Southeast Asia’s super app, Grab covers three major areas:
Mobility: Ride-hailing, car-sharing, motorcycles, carpooling, making commuting and traveling more convenient.
Deliveries: Food delivery, grocery, and courier services, covering everyday needs.
Financial Services: Digital payments (GrabPay), loans, insurance, expanding cashless transactions.
Questions for Discussion:
How much do you spend on Grab's delivery or ride-hailing services each month?
Do you see potential in Grab's financial services growth?
Have you used Grab's financial services (GrabPay, loans, insurance)? How was your experience?
Leave your comments and also post to win tiger coins~
Comments
I rarely use Grab $Grab Holdings(GRAB)$
I haven't personally used Grab's financial services like GrabPay, loans, or insurance, but I can see the potential for growth in this sector. The 64% growth in its loan portfolio is impressive, showing strong expansion in digital financial services. However, sustainability will be key, as heavy user incentives may not be a long-term solution for maintaining growth.
While Grab's revenue and operating cash flow have improved, missing Bloomberg's forecasts seems to have dampened market sentiment. The company's projected sales for this year are slightly below analyst expectations, raising concerns about whether it can sustain its growth momentum. I believe its financial services segment could be a major differentiator if executed well, but the next few quarters will be crucial in proving its long-term potential.
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The strong 1Q revenue growth, driven by cost-reduction measures and robust demand for its services. It also raised its full-year profit forecast, indicating a positive shift in its financial trajectory
The surge in SEA tourism and corporate events has boosted demand for ride-share services, a key driver of revenue
Gojek and Tada could impact Grab's market share.Inflation and interest rates, could influence consumer spending.
It's royalty program, GrabUnlimited, has boosted food delivery GMV but relies heavily on discounts and incentives, raising concerns about sustainability
With a significant market share already, it needs to find new ways to attract fresh and retain existing ones
GSX Bank, is expected to break even by 2026, Its ability to sustain growth and maintain a competitive edge remains uncertain. It's success will depend maintain customer loyalty, and continue to innovate and expand its services.
🤭😓I tend to use comfort rather than grab as I was told that the longer you use grab, the more expensive is the car ride. I think the last time I use grab service was pre-Covid time and I think only 3-4 times. Maybe I m used to comfort as when I called the hotline, they have my pick up location. Otherwise, normal time, family members are my grab drivers.